Question: Question 1 4 ( 2 . 5 points ) 1 4 . A 1 0 - year corporate bond has an annual coupon of 9

Question 14(2.5 points)
14. A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling following statements is CORRECT?
a. The bond's expected capital gains yield is zero.
b. The bond's yield to maturity is above 9%.
c. If the bond's yield to maturity declines, the bond will sell at a discount.
d. The bond's current yield is less than its expected capital gains yield.
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Question 1 4 ( 2 . 5 points ) 1 4 . A 1 0 - year

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